Sergei Bakeshin has commented on a bankruptcy case involving the former vice-governor of the Leningrad region

Uralsib Bank has petitioned for the bankruptcy of Nikolai Pasyadu, the founder of Glavstroykompleks (GSK) and the former vice-governor of the Leningrad region. The GSK Group has missed deadlines to complete two residential developments in the Leningrad Region, both companies are now involved in insolvency proceedings. Last summer, the bank tried to recover 1 billion roubles from GSK. On 2 July 2020, the court of first instance upheld the bank’s claim to prosecute Nikolai Pasyadu as part of the proceedings against Glavstroykompleks – the businessman plans to challenge the court’s decision.

“The personal bankruptcy of managers and directors of insolvent companies is becoming an increasingly common practice. Often, a company’s insolvency case is initiated only in order for individuals to incur subsidiary liability and initiate bankruptcy proceedings against them”, commented Sergei Bakeshin, Head of Dispute Resolution and Insolvency Practice at Maxima Legal, for RBC.

According Sergei, subsidiary liability in the future will be brought up in bankruptcy of the entrepreneur. At the same time, one court case may lead to another being delayed. “In the future, the requirements for subsidiary liability to be included in the register of creditors, and settlements with them will not be made until that moment”, explained Sergei.

Sergei believes that if Nikolay Pasyada transferred his property in advance to other persons then creditors will not be able to challenge this.

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